Robo-advisors: Automated Investment Management A robo-advisor is a digital platform that uses algorithms to provide automated, financial advice and investment management services. Unlike traditional human financial advisors, robo-advisors require minimal human intervention, making them a more affordable and accessible option for many investors. How Robo-advisors Work Here's a simplified breakdown of how robo-advisors work: Risk Assessment: You'll start by completing a questionnaire that assesses your financial goals, risk tolerance, and investment time horizon. Portfolio Creation: Based on your answers, the robo-advisor will recommend a diversified investment portfolio composed of various assets like stocks, bonds, and ETFs. Automated Investing: The robo-advisor will automatically invest your funds according to your chosen portfolio allocation and rebalance it periodically to maintain your desired asset mix. Monitoring and Management: The robo-advisor continuous...
Wealth Management